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A' signs instruments in the following terms, which instruments are promissory note under Section 4 of the Negotiable Instruments Act, 1881?
A
I promise to pay 'B' or order Rs. 500/- to be paid on demand
B
I promise to pay 'B' Rs. 5000/- and all other some which shall be due to him
C
I promise to pay 'B' Rs. 5000/- first deducting there out any money which he may own me
D
I promise to pay 'B' Rs. 5000/- ten days after my marriage with 'C'
Correct Answer:
I promise to pay 'B' or order Rs. 500/- to be paid on demand
Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note?
1. Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act
2. Containing an unconditional undertaking
3. To pay a certain sum of money only to a specific person or the bearer
4. The seller is bound to accept the promissory note
5. A document was written and signed by the payer/maker
A
2, 3 and 5
B
2, 3 and 4
C
1, 2, 3 and 4
D
All of the above
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the given below.
Assertion (A): A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Reason (R): Because it is said so under Section 13 of the Negotiable Instruments Act, 1881.
A
Both (A) and (R) are correct and (R) is the correct explanation of (A)
B
(A) is false, but (R) is true
C
Both (A) and (R) are false
D
(A) is true, but (R) is false
A minor borrowed some money on a promissory note. After attaining majority, he executed another promissory note in respect of the original loan plus the accrued interest. The creditor filed a suit to recover the money on the basis of the second promissory note. The suit is liable
A
To be dismissed as the money was not advanced to the minor for necessaries
B
To be dismissed as the first promissory note being void cannot constitute a valid consideration
C
To be decreed as the second promissory note was executed when the debtor had become major
D
To be decreed as the loan given under the first promissory note constitutes past consideration and the past consideration is valid under the Indian law
As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed tobe due on the . . . . . . . . .
A
Said public holiday
B
5 days succeeding public holiday
C
Next succeeding business day
D
Next preceding business day
A threatens Z that he will keep Z's child in wrongful confinement, unless Z signs and delivers a promissory note binding Z to pay a certain sum of money to A. Z signs and delivers the note. A has committed the offence of
A
Robbery
B
Theft
C
Extortion
D
Assault
X sues A and B on a promissory note executed by A, B is A's nephew, and he is joined as a defendant on the ground that A and B are member of a joint Hindu family, and that the note was for a debt binding on the family. None of the defendant appears at the hearing and an ex parte decree is passed against both the defendants.
The decree against A proceeds on the ground that the note was passed by him and against B on the ground that the debt was incurred for a family purpose. B applies for an order to set aside the decree, alleging that the summons was not served upon him and that the debt in respect of which the note was passed by A was not incurred for a family purpose. It is not disputed that the amount was actually advanced to A.
A
The decree against Amust be set aside
B
The decree against B must be set aside
C
Both A and B
D
None of these
According to Section 4 of Negotiable Instrument Act, this is an instrument in writing (note being a bank-note or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money to or to the order of a certain person, or to the bearer of the instruments. Which instrument is being talked here?
A
Promissory Note
B
Cheque
C
Hundi
D
All of the above
Under Section 23 of Negotiable Instruments Act, a promissory note or bill of exchange, dated 31
st
August, 2018 is made payable three months after date. The instrument is at maturity of the . . . . . . . . ?
A
30<sup>th</sup> November, 2018
B
31<sup>st</sup> November, 2018
C
1<sup>st</sup> December, 2018
D
3<sup>rd</sup> December, 2018
Under section 11 of the Negotiable Instruments Act, a promissory note, bill of exchange or cheque drawn or made in India, and made payable in, or drawn upon any person resident in India is . . . . . . . .
A
Inland instrument
B
Foreign instrument
C
Negotiable instrument
D
Indorsement
Under section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the contrary is proved, that every transfer of a negotiable instrument was made
A
After its maturity
B
Before its maturity
C
At its maturity
D
None of the above